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Does an Attractive Pension Product Design Sell by Itself? The Experience of the Czech Republic

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  • Jiří Šindelář
  • Michal Erben

Abstract

This paper deals with the experience of third pillar reform in the Czech Republic, executed in 2013. The core of our study is formed by a comparative analysis of newly introduced supplementary pension savings and its substitute products (investment funds, life insurance) from two main aspects: product features and distribution features. The outcomes are supported by empirical sales and population penetration of the surveyed products. The results indicate that even a pension product with a very attractive product design, such as supplementary pension savings, will be hampered by its substitutes as long as its distribution features are unattractive. This is an important lesson, particularly for the discussed European solution, the pan-European portable pension product (PEPP).

Suggested Citation

  • Jiří Šindelář & Michal Erben, 2018. "Does an Attractive Pension Product Design Sell by Itself? The Experience of the Czech Republic," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2018(3), pages 35-46.
    • Handle: RePEc:prg:jnlaop:v:2018:y:2018:i:3:id:604:p:35-46
    DOI: 10.18267/j.aop.604
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    References listed on IDEAS

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    1. Braun, Alexander & Schmeiser, Hato & Schreiber, Florian, 2016. "On consumer preferences and the willingness to pay for term life insurance," European Journal of Operational Research, Elsevier, vol. 253(3), pages 761-776.
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    More about this item

    Keywords

    pension reform; third pillar; investment fund; life insurance; distribution;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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